Goldmoney Completes Successful Closure of Its Jersey Operations

Rhea-AI Summary

Goldmoney Inc. announced its operational restructuring plan in the Third Quarter 2021 Earnings Report on February 9, 2021. The company successfully closed its Jersey operations, projected to save nearly $4 million annually. This closure, completed in September, eliminated redundancies and improved operational efficiency. Following the closure, the Jersey Financial Services Commission proposed a ten-year ban on future Jersey operations. Management views these developments positively, focusing on long-term shareholder value with the realized savings.

Positive

• Annual savings of around $4 million expected from the closure of Jersey operations.
• Improved operational efficiency and response times from relocating the Relationship Management Team to Canada.
• Successful completion of the Jersey office closure on schedule.

Negative

• Ten-year operational ban proposed by Jersey Financial Services Commission hampers future operations in Jersey.

TORONTO--(BUSINESS WIRE)-- In its Third Quarter 2021 Earnings Report released on February 9, 2021, Goldmoney Inc. (the “Company”) disclosed the plan to restructure its operations by transferring its activities from Jersey, Channel Islands to achieve cost efficiencies, which the Company projected to complete during fiscal year 2022. More recently in its June 23, 2021 Annual Letter to Shareholders, the Company announced it had successfully ceased business in Jersey, with customers having the choice of moving their relationship to the Canadian or United Kingdom offices.

As we near six months since the closure of our Jersey operations, the benefits to the Company’s shareholders and clients are significant:

• Through the elimination of redundancies in staffing, facilities, and IT, we expect to recover within 12 months all the costs related to the closure of the Jersey operations, and thereafter benefit from structural savings close to $4 million each year in the future.
• Our Treasury team has achieved lower operating costs with economies of scale from consolidating our supplier and vaulting relationships.
• By moving our primary Relationship Management Team to Canada and adding additional contact options to the Goldmoney Holding, we have improved our response times and client satisfaction.

The closure of the Jersey office was completed on schedule in September. Subsequently, the Jersey Financial Services Commission (“JFSC”) approached the Company in relation to a matter that had occurred within the Jersey-based subsidiary during the 2016 to 2018 period. To resolve this matter, the JFSC proposed that Goldmoney would not be permitted to operate in Jersey for a period of ten years, should it choose to re-establish a Jersey office. Having made in January 2021 the commercial decision to close its operations in Jersey, thereby making any plans to return there unlikely, the Company considered its alternative courses of action and decided it was in the best interests of its shareholders to accept the JFSC’s proposal.

With these matters now behind us, and with the significant realised savings that closing our Jersey operations is now providing, management looks forward to focusing our entrepreneurial energies on delivering long-term value to our shareholders.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220107005296/en/

Mark Olson, +1 (647) 250-7170

Source: Goldmoney Inc.

FAQ

What are the financial benefits of Goldmoney Inc.'s restructuring plan?

Goldmoney Inc. expects annual savings of approximately $4 million from the closure of its Jersey operations.

When did Goldmoney Inc. close its Jersey operations?

Goldmoney Inc. completed the closure of its Jersey operations in September.

How has Goldmoney improved client satisfaction after relocating operations?

The relocation of the Relationship Management Team to Canada has improved response times and client satisfaction.

What is the impact of the Jersey Financial Services Commission's proposal on Goldmoney Inc.?

The proposal includes a ten-year ban on future operations in Jersey, which Goldmoney accepted as it had already closed its Jersey office.